Council eyes neighbourhood infill reward for participating areas

A proposed neighbourhood infill benefits reserve would direct 80% of property tax revenue from many two-, three- and four-unit infill projects to the wards where they occur for five years, and city council is scheduled to vote on the plan on Jan. 29.

A new proposal would create a neighbourhood infill benefits reserve to channel a portion of property tax revenue from certain small infill projects back to the communities where they are built. The plan would collect 80 per cent of property tax revenue generated by many two-, three- and four-unit developments for five years, starting the year after a development is completed. The reserve would apply inside a designated intensification target area created after June 2025 zoning changes that allow more homes on typical lots. City council members have both welcomed the idea and expressed concerns about how much revenue it will actually raise. Key details: - The reserve would capture 80% of property tax revenue from many two-, three- and four-unit infill projects for five years beginning the year after completion. - It would apply within an "intensification target area" that covers most neighbourhoods but excludes some of the newest areas such as Sage Creek. - City staff estimate St. Vital could account for about 20% of these projects over the next decade based on past development patterns. - Projected revenue ranges from about $136,000 to $490,000 per year over the next decade, depending on how many homes are built; grants could be available by mid-2027. - City officials said the reserve would not collect tax dollars from secondary suites on the same lot, a point Coun. Brian Mayes has urged be reconsidered. - A separate report showed only five development permits for such projects were issued between June 26, 2025 and the third week of November, prompting questions about likely uptake. Summary: The reserve is intended to fund community amenities such as park land, recreation facilities or tree planting in the wards where infill occurs, with funds allocated to be spent in or near those infill areas. Some councillors describe the proposal as a first step toward recognising impacts of added housing, while others worry actual revenues may be lower than projections. City council is slated to cast the final vote on Jan. 29, and staff estimate grants could become available by mid-2027. Undetermined at this time